STOCK WATCH
Why Sibanye’s growth strategy gets the better of SA rivals
Since listing in February 2013, shares in Sibanye, SA’s largest producer of domestic gold, have gained 62%
Sibanye Gold’s aggressive growth strategy since its listing in February 2013 has set it apart from its South African peers and despite a dip when it announced a $2.2bn purchase of a US palladium miner, investors have kept their faith in the company. Sibanye, which has grown its gold asset base shortly after listing, snapping up operating gold mines, a gold mine in development and exploration prospects, has invested heavily in platinum, buying the whole of Aquarius Platinum and the neighbouring Rustenburg mines from Anglo American Platinum. Sibanye’s most audacious deal is the $2.2bn cash purchase of Stillwater Mining, a US-based company mining palladium and platinum from shallow, mechanised, low-cost operations, which will, in time, offset declining revenue from the South African gold mines and act as a counterbalance to the volatile rand and regulatory uncertainty weighing on its local assets. Since listing in February 2013, shares in Sibanye, SA’s largest producer of domestic gold...
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